The modelling by consultants Ansell Strategic puts the cost of the Government’s announced $1.2 billion in cuts to ACFI in the 2016-17 budget much higher at $2.5 billion, nearly $840 million more than the Government’s estimates.

The report, which was commissioned by UnitingCare Australia, Aged & Community Services and Catholic Health Australia, surveyed 501 aged care facilities representing 39,000 residents and found the changes would decrease the annual funding per resident by $6,655 or 11 per cent.

Steve Teulan, Chair of the UnitingCare Australia Aged Care Network, said the Government was “arbitrarily reducing the level of care assigned to frail older people in care”.

“If these cuts are implemented as stated, by 2017 service providers will be forced to seriously consider both turning away sick old people who are seeking admission from hospital and reducing services, particularly allied health,” he said.